5 Minutes Read

India’s oil boom: Growing into role as No. 1 in global demand

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

Just before the minister addressed media, Fatih Birol, International Energy Agency executive director, told reporters that India and China would be responsible for about half of oil demand growth. He said India has just become first in oil demand growth, but not yet natural gas.

India is moving into position to be the biggest driver of global oil demand growth, and it is seeking new investment in its own energy industry.

India’s energy minister announced a new round of bidding for upstream and downstream investments on Monday. “We want to increase our production. We want to invite investment,” said Shri Dharmendra Pradhan, the country’s minister of petroleum and natural gas, speaking at the annual CERAWeek conference in Houston.

“I must tell you there was never a better time to be in India. I encourage both existing and new players to come forward and avail the opportunity,” he said in prepared remarks.

Just before the minister addressed media, Fatih Birol, International Energy Agency executive director, told reporters that India and China would be responsible for about half of oil demand growth. He said India has just become first in oil demand growth, but not yet natural gas.

“India is the third-largest oil consumer in the world, which is a clear indication of the importance of petroleum products in our daily lives,” Pradhan said. “Also, according to the International Energy Agency, we are likely to contribute the most to the rise in global energy demand over the coming decades.”

 

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Donald Trump has signed a new travel ban. Here’s what changed

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

It bars travel to the US for 90 days from six predominantly Muslim countries — Sudan, Syria, Iran, Libya, Somalia and Yemen, according to a Department of Homeland Security fact sheet. It excludes Iraq, which was on the original list.

President Donald Trump doubled down Monday on the most divisive action of his young presidency, signing a new executive order temporarily blocking travel to the United States from countries he says pose a high terrorism risk, NBC News confirmed.

The new measure contains some key differences from the one signed in January that prompted nationwide confusion and was suspended in federal court. It bars travel to the US for 90 days from six predominantly Muslim countries — Sudan, Syria, Iran, Libya, Somalia and Yemen, according to a Department of Homeland Security fact sheet. It excludes Iraq, which was on the original list.

The new US travel ban order, which takes effect March 16, does not restrict legal permanent residents, or green card holders, from re-entering the US, the DHS said. The first measure initially did, on a case-by-case basis. The order will allow people who had visas by Jan. 27, the date the first order was signed, or earlier to enter the US

Trump has argued that the restrictions, which follow on a key campaign pledge for “extreme vetting,” are necessary to prevent attacks on US soil. Critics have contended the measures constitute a religious ban, based on Trump’s campaign rhetoric against Muslims, and could prove counterproductive in fighting terrorism.

The president has berated the judges who suspended the initial order, and the White House crafted Monday’s measure to better stand up to legal scrutiny. It is not yet entirely clear how well the changes will help it do so.

The new order halts all refugee admissions for 120 days. It does not indefinitely suspend the entry of Syrian refugees specifically, as the first measure did.

The DHS said it will carry out a “global, country-by-country review” of “identity and security information” that each country provides to the US for visa programs. The US will give those countries 50 days to improve their standards.

Regardless of the changes, the travel restrictions will likely spark immediate controversy. After the initial order was signed in late January, Democrats, civil rights groups and some Republicans criticised Trump for the measure and its swift implementation. Protests broke out at airports across the country.

DHS Secretary John Kelly said in February he should have “delayed it just a bit” after lawmakers raised concerns that they were left in the dark.

Kelly, Secretary of State Rex Tillerson and Attorney General Jeff Sessions are slated to deliver remarks on the travel restrictions at 11:30 am, ET.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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 5 Minutes Read

Trump’s tax reform could tip US into recession, possibly serfdom

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

While President Donald Trump has recognized that America’s private sector desperately needs reflating, he doesn’t yet appear to have realized that this involves alleviating the personal and business debt overhang and enabling more equitable distribution of wealth and incomes, especially in favor of the poorest and lowest earners.

A breeding ground for the next Great Depression now exists.

In simple terms a depression is a recession that begins at a time when there are extreme levels of private-sector debt (and in consequence generally also an over-leveraged, acutely fragile banking system and stratospheric asset prices).

According to the Bank of International Settlements, the relative level of private debt today – whether in global aggregate, in the highly-financialized UK, and US or in the seven countries highlighted by my colleague Steve Keen, the chief economist at IDEA Economics, as most vulnerable to a debt crisis – is comparable to and, in many cases, worse than in the late-1920s.

Therefore, we should all be desperately seeking to “avoid” triggering a re-run of the 1930s (“avoid” in the standard sense and not the political vernacular where it means “delay for a four to five-year term of office”).

Cue the Trump tax reforms…

While US President Donald Trump has recognized that America’s private sector desperately needs reflating, he doesn’t yet appear to have realized that this involves alleviating the personal and business debt overhang and enabling more equitable distribution of wealth and incomes, especially in favor of the poorest and lowest earners.

This can be achieved in several ways, including a combination of higher benefits and earned incomes, reduced real debt burdens (by devaluing the currency, by deflation and/or by debt forgiveness) and greater provision of free or low-cost services by the state.

Quite apart from the social value of these programs, this is merely a recognition of economic realities. Ultimately, the narrower the wealth and income bases are, the less efficient an economy is. If a single individual owns the entire productive asset base, then the only employment is indentured slavery. In other words, serfdom.

Although Trump has outlined indicative policies purportedly designed to promote higher economic growth (or in bloviated Trumpspeak “to make America great again”), the reality of the policies seemingly favored by the new administration appears to be a fast-track return to ruination and possibly serfdom. Despite the rhetoric of phenomenal tax reform supposedly for the benefit of everyone, it appears they may not have learned the lessons of counter-intuitive history.

Although we still await the final details, the proposed tax cuts appear to amount to a further distribution in favor of the wealthiest individuals (and the corporations primarily owned by them). Talk of cutting government expenditure also remains vague and Treasury Secretary Steve Mnuchin has repeated the mantra that the tax cuts will be funded by the additional growth generated (which will seemingly happen towards the end of next year and is only capable of being understood and accurately forecast by those inside the administration).

It seems that we can expect some redistribution of funds from the US government (which has been spending with some degree of equity) to the wealthiest and those earning more than $1 million per annum (who will claim almost half of the tax cuts expected to be offered).

This represents a further redistribution away from those with the greatest need (and therefore the highest marginal propensity to spend) to those with the least marginal propensity to spend.

Corporate and personal tax cuts will simply take out of circulation money that was revolving, albeit at a sedentary pace. In doing so, this creates a curb on economic activity that disproportionately hurts those lower down the income ladder.

In a recent article on The Brookings Institution website, former Fed governor Ben Bernanke acknowledged that in general tax cuts have a much smaller impact on economic demand than government spending. The NBER (National Bureau of Economic Research) estimates that of every dollar of corporate tax cuts, only an additional 50 cents reappear in economic circulation – meaning that it has a very limited positive effect, despite all the false rhetoric being thrown around that tax cuts are significantly stimulatory.

In isolation, they may appear to be positive but in aggregate when the secondary effects of corporate tax cuts are considered, these will invariably disappoint, as more and more commentators have started to realize.

Moreover, this is not a typical time and therefore the headwinds for the assumed Trump tax cuts impacts should be expected to be far stronger than that.

Furthermore, whatever proprietary dynamic models the Trump economic team conjure to support fictional future growth forecasts, the $6-7 trillion of proposed tax cuts will ultimately be funded largely by reduced spending. This will become more evident in the discussions surrounding the debt ceiling increase next month.

At the precise time when increased government spending is required to reflate America, the redirection of this funding into tax cuts is almost certainly adverse. Maybe this explains why Trump tax reform’s timeline has now been extended until the August recess.

My empirically-based model of the new administration’s tax, infrastructure and government spending policies (especially the tax policies) forecasts that they’d combine to make a bad situation far worse, derailing the US economy and if enacted now, “Trumponomics” could create a primary drag of up to 2 percent on US GDP (gross domestic product) – excluding such secondary effects as higher interest rates, stronger USD FX rates and viciously spiraling deflation.

This would almost certainly tip America into a recession that would most likely become known as America’s second Great Depression, having once again blundered in the control of a delicate machine, the complexities of which policy-makers still don’t understand.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Should Elon Musk be able to buy Twitter?

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Asian shares cautious as geopolitical risks heighten

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

Chinese stocks were resiliently higher, with Shanghai composite up 0.03 percent and Shenzhen composite added 0.3 percent. Hong Kong’s Hang Seng index was up 0.46 percent.

Asian shares were warily mixed on Monday, as geopolitical risks in Asia heighten after North Korea fired multiple ballistic missiles.

North Korea fired multiple missiles off its east coast, which flew about 1,000 km (620 miles), South Korea’s military said, while Japan said three missiles landed inside its exclusive economic zone and that it would not tolerate the hermit state’s provocative actions.

Japan’s Nikkei 225 fell 0.43 percent, while the Kospi was down 0.12 percent.

Australia’s ASX 200 was up 0.19 percent, after January retail sales increased by 0.4 percent from the previous month which were inline with expectations from a Reuters poll.

Chinese stocks were resiliently higher, with Shanghai composite up 0.03 percent and Shenzhen composite added 0.3 percent. Hong Kong’s Hang Seng index was up 0.46 percent.

At the weekend, Premier Li Keqiang sounded a cautious note at the annual meeting of parliament that began Sunday, and said that China would expand its economy by around 6.5 percent, compared to the growth target of 6.5 to 7 percent set last year.

Other notable targets from Li’s speech include China aiming for an annual consumer price index (CPI) of around 3 percent, and an annual budget deficit of 3 percent of gross domestic product, and 2017 M2 growth of about 12 percent.

The annual National People’s Congress (NPC) will also kick off today and last until March 15.

“Stability is the main objective this year [which] is not surprising given the key 19th Party Plenum in Oct/Nov where the CPC will name a new set of leaders,” said Nizam Idris, Gareth Berry, and Teresa Lam, strategists at Macquarie Bank, in a Monday note.

In other news, South Korea’s trade minister said that the government would strengthen its response to China’s recent discrimination towards South Korea companies. Local South Korean media reported that Beijing ordered local travel agencies in the capital to stop selling the China-Korea route trip packages both online and offline.

During Asian trade, Brent crude futures slipped 0.2 percent to $55.79 a barrel and U.S. crude fell 0.3 percent to $53.18. This comes after a surge of more than 1 percent for both crude futures last Friday on the softer dollar.

The Organization of Petroleum Exporting Countries (OPEC) Secretary Mohammad Sanusi Barkindo told reporters ahead of CERAWeek energy conference in Houston that OPEC will decide in May whether to extend its production deal with non-OPEC members. Barkindo added that a monitoring committee will meet on March 25.

Markets stateside posted weekly gains last Friday, after Federal Reserve head Janet Yellen emphasized the possibility of a rate hike this month.

The Dow Jones industrial average rose just 0.01 percent to 21,005.71, the S&P 500 index lifted 0.05 percent to 2,383.12 while the Nasdaq composite finished up 0.16 percent to 5,870.75.

Expectations for a Fed rate increase in March is also up at 79.7 percent, according to CME Group’s FedWatch tool, as there remains the risk of a poor nonfarm payrolls report due this Friday.

In other news, Deutsche Bank plans to raise capital and list its asset management business and overhaul its business structure after spending two years dealing with past scandals and massive losses, Reuters reported.

The dollar index, which tracks the greenback against a basket of major currencies, was trading at 101.43 after falling from the 102 handle last week on Yellen’s rate rise comments. The yen strengthened against to greenback to 113.73, earlier above 114, as the Australian dollar tracked USD 0.7583.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Should Elon Musk be able to buy Twitter?

 5 Minutes Read

Three reasons the Fed wants to hike rates in March

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

In what looks to be an early spring migration, Fed officials have turned very hawkish overnight, warning a rate hike is likely in mid-March, while Wall Street had been expecting a June hike.

After raising interest rates just twice in 10 years, the Federal Reserve is suddenly in a hurry to get moving on its next rate hike.

In what looks to be an early spring migration, Fed officials have turned very hawkish overnight, warning a rate hike is likely in mid-March, while Wall Street had been expecting a June hike.

Fed Chair Janet Yellen is likely to send that message when she speaks Friday at 1 p.m. ET at the Executives’ Club of Chicago, and similar comments are expected from Fed Vice Chair Stanley Fischer at noon.

“Speaker after speaker, whether they lie on the dovish or hawkish end of the spectrum, have all shifted to the right,” said Rob Martin, senior US economist at Barclays.

Martin said the three most important Fed officials to comment this week were New York Fed President William Dudley, Fed Gov. Lael Brainard, usually very dovish, and Fed Gov. Jerome Powell. “When the regional presidents go out and talk, they’re not as coordinated.

When we see two people come out from the board and give a similar message, that feels like a coordinated communication, and I expect the chair to echo those sentiments when she speaks,” said Martin. Brainard and Dudley are viewed as part of the dovish core of the Fed, along with Yellen and Fischer.

So, strategists and economists have come up with reasons they believe the Fed could feel compelled to get off the sidelines and begin delivering the three rate hikes it has forecast for this year.

The first reason, suggested by David Ader, chief macro strategist at Inform

a Financial Intelligence, is part of what he says could be the Fed’s hidden agenda.

Right about when the Fed would vote on a rate hike March 15, the legislated extension of the debt ceiling expires, putting Congress on notice it needs to come to a budget solution to avoid default. The government would run out of money sometime in the fall, and that’s when the budget battling could really heat up in Washington. While it’s widely expected the administration and Congress will work out a deal, Ader said there is also going to be a lot of discussion about other budget-related topics, such as tax reform, fiscal stimulus and how to pay for it all.

“I think there’s a secret agenda. If we’re talking about it, they’re talking about it,” he said. “We could have a debt ceiling fight. … The debate and contentiousness within the Republican party, it could be severe. The Fed obviously wants to hike. It’s been trying to hike.”

Ader changed his mind this week, and now thinks a March hike is mostly certain. “I do not think this is the main thrust of it. I think the Fed wants to hike on its own merits, but nonetheless the timing has worked out that if it’s going to become an ugly fight, it’s going to happen later. If you’re the Fed you’re going to say: ‘Let’s do it now because maybe will not have the chance to do it later,'” he said.

With its goal of getting three hikes in this year, Ader suggests the Fed doesn’t want to run into that.

A second reason is something Fed critics and fans alike have been concerned about for a very long time. Michael Feroli, chief US economist at JPMorgan said, in a note, the Fed may be worried it is going to overshoot on full employment and fan inflation. That would mean the Fed is behind the curve, which is something that constantly nags at markets.

“Recently, Fed speakers have been rhetorically asking whether the FOMC is behind the curve. While they consistently answer in the negative, the very fact they are asking the question may belie the doubts in their own heads. Even the most jerry-rigged policy rules have a hard time justifying rates where they are,” notes Feroli. He notes that others have pointed to possible froth in asset markets as a warning sign that the Fed is moving too slowly.

A third reason, put forth by Barclays’ Martin is that the Fed has perfect a perfect runway to land a rate hike.

“What has changed is equity markets. Financial conditions have eased considerably over the last little while. The increase in the equity market hasn’t been associated with an appreciation in the dollar,” he said, adding the Fed funds futures also signal a rate hike. “They are going to take al ot of comfort that market pricing for the March meeting moved from something in the 30s [percent odds] to high in the 80s…We didn’t get a rip in the dollar. We didn’t get a step back in equities,” he said.

Stocks did pull back Thursday, after rallying to record highs Wednesday on the best volume of the year. The Dow was down 112 at 21,002, but yet to be seen is whether it is responding to a more than 300 point run up or concern the days of easy money are ending a little bit sooner. The Dow is up about 14.5 percent since the election.

Bond yields have snapped higher in the last week, with the Fed-sensitive two-year Treasury yield dramatically higher at 1.32, the highest level since 2009.

If the Fed does move as expected, and the economic data cooperates, the market will have a new dilemma when it raises rates in March.

“Of course, the Fed hiking in March will increase expectations that the Fed will deliver quarterly rate hikes,” noted Feroli. He expects to see the Fed raise its forecast for rate hikes in its March forecast. “It is a harder to get the median to increase to four hikes, but given the recent rhetoric that can’t be ruled out,” Feroli noted.

He did not change his call yet, from a next hike in May, and he is waiting to hear Fischer and Yellen Friday.

Besides speculating about the Fed, markets Friday will be watching ISM nonmanufacturing data at 10 a.m. ET, and Markit services PMI at 9:45 a.m. Three other Fed speakers are on the calendar besides Yellen and Fischer. Chicago Fed President Charles Evans and Richmond Fed President Jeffrey Lacker are on a panel together at 10:15 a.m. ET, and Fed Gov. Powell is part of a roundtable at 12:15 p.m.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Post-demonetisation, India slowly returning to ‘normalcy’: SBI

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

“When we found out that 86 percent of the currency had been demonetized, … the sheer size of the task was intimidating. On top of that, remember we had no arrangements ahead of time,” Arundhati Bhattacharya, chairwoman of the State Bank of India (SBI), told CNBC’s “Managing Asia.”

India’s largest bank was blindsided by Indian Prime Minister Narendra Modi’s demonetization drive with daily business severely disrupted, the head of the lender said, but the outcome sees economy returning to “normalcy,” and a surge in deposits from the cash swap has given more room on lending.

“When we found out that 86 percent of the currency had been demonetized, … the sheer size of the task was intimidating. On top of that, remember we had no arrangements ahead of time,” Arundhati Bhattacharya, chairwoman of the State Bank of India (SBI), told CNBC’s “Managing Asia.”

On Nov. 8 last year, India implemented a shock currency swap that required all 500 and 1,000 rupee notes be exchanged for new tender in 500 and 2,000 rupee denominations by the end of 2016. Nearly all transactions were handled through the banking system to meet the deadline.

That put the spotlight on state-owned SBI as the top lender and with a footprint that stands to become even larger if it succeeds in a planned merger with five of its associate banks.

“(Demonetization) caught the entire system off guard … We had just 24 hours in which to set up exactly the processes by which we could do this – move cash around the country, ensure that there were enough counters for people to come in and get their money exchanged, get our own people trained on how these things would be done. So a huge amount of activity,” Bhattacharya said.

Access to cash was restricted during the swap and and there were complaints the drive impacted the poor disproportionately. But Bhattacharya said the initial shocks of demonetization were gradually wearing off and the Indian economy was “very close” to returning to “normalcy.”

“I won’t say it is 100 percent but mostly, I think things have come back and if you look at the amount of revenues that many of the companies are getting, many of them are quite surprised at the very sharp V-shaped recovery they’ve seen,” Bhattacharya said.

Discretionary spending might have decreased during the period, but this was because of the absence of a “mode of exchange” rather than diminished demand, Bhattacharya explained. “Once the mode of exchange came back in, the demand has picked up again,” she added.

The positive sentiment was reflected in better-than-expected Q4 GDP figures released Wednesday that showed a 7 percent growth rate for the quarter, although some experts cautioned against prematurely celebrating the beat.

Going forward, the SBI chairwoman said she believed India would bounce back as the world’s fastest growing economy “in another two quarters time.”

“(Demonetization) was a temporary setback and if you consider the long-term benefits, then I think that definitely outweighs the temporary setback we have had,” Bhattacharya said.

One segment of SBI’s business that was impacted in a good way was the surge in deposit inflows received as people rushed to put their money in banks, inadvertently causing SBI’s funding base to sharply increase.

“In my entire career, I have never seen this kind of deposit flow. We were growing at something like 8 to 10 percent. Suddenly, we were growing at 22 to 25 percent, which is huge. We’ve also seen that the amount of money flowing out once these curbs have been lifted … (but) at least 60 to 65 percent is still in the bank. So to that extent, lendable resources have definitely gone up,” Bhattacharya said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Snap rockets 40% and keeps on flying: Stock opens at $24/share

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

The company, trading under the ticker SNAP, priced its 200 million share public offering at USD 17 a share on Wednesday. The IPO was 12 times oversubscribed, sources said.

Snap started trading at USD 24 a share on the New York Stock Exchange on Thursday, soaring more than 40 percent from its pricing.

The company, trading under the ticker SNAP, priced its 200 million share public offering at USD 17 a share on Wednesday. The IPO was 12 times oversubscribed, sources said.

The young ephemeral photo messaging company posted a USD 515 million loss last year. Nonetheless, investors have bet on its quickly growing revenue and visionary leader, 26-year-old co-founder CEO Evan Spiegel.

Spiegel arrived at the stock exchange on Thursday morning to ring the bell, with supermodel fiancee Miranda Kerr in tow, documenting with pictures on the app.

The Venice, California-based company, which serves augmented reality and cinematic advertisements to its young adult audience, could be a bellwether as other start-up giants, such as Airbnb and Uber, mull a public offering.

Snap enters the public market a day after the three major U.S. stock indexes posted their best session of the year.

Here’s how the company stacks up so far to other big tech IPOs, according to CNBC analysis of data from FactSet and Renaissance:

Facebook went public on May 18, 2012, priced at USD 38 per share. It gained only 0.61 percent in its debut closing at USD 38.23.
-Deal Size: Almost USD 16 billion

Twitter went public on Nov. 7, 2013, priced at USD 26 per share. It gained 72.69 percent in its debut closing at USD 44.90.
-Deal Size USD 1.82 billion (shares used to calculate do not contain the overallotment)

Alibaba went public on Sept. 19, 2014, and priced at USD 68 per share. It gained 38.07 percent in its debut closing at USD 93.89.
-Deal Size USD 21.77 billion (not including overallotment or green shoe)

LinkedIn went public on May 19, 2011, and priced at USD 45 per share. It doubled in its debut, gaining 109.44 percent to close at USD 94.25.
-Deal size USD 352.8 million

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
Powered by
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What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?

‘Too early to celebrate’ India’s GDP beat: Former FM Chidambaram

India shocked expectations on Tuesday by posting faster-than-expected economic growth in the December quarter, despite a move that drained cash from consumers during the period as the government swapped old currency notes for new.

But the country’s former finance minister, P Chidambaram, says it is too early to celebrate.

Official data showed India’s gross domestic product (GDP) grew 7 percent annually for the quarter, sharply beating expectations for a 6.4 percent growth rate in a Reuters poll. The economy slowed from the September quarter’s 7.3 percent annual growth rate.

“The GDP numbers have come as a bit of a surprise,” Chidambaram told CNBC’s “Street Signs” on Wednesday, adding that the 7 percent projection by India’s Central Statistics Office is completely out of line with other projections he had seen, including estimates made by the IMF, the Reserve Bank of India (RBI) and the Center for Monitoring Indian Economy.

He said, “All these are very credible institutions which have made credible forecast in the past, so I think we’ll have to take this number for what it is for the time being and examine it closely.”

Prime Minister Narendra Modi announced on November 8 that existing 500 and 1,000 rupee notes were banned, to be replaced with newly printed 500 and 2,000 rupee notes by the end of 2016. The unexpected move led to a massive shortage of notes in India’s cash-heavy economy and experts predicted short-term disruption in logistics, production and supply of goods to affect sectors like automobiles, transportation, services and construction.

The better-than-expected GDP print also meant that the demonetization policy likely failed to tackle India’s black money problem, for which it was introduced, said Schroders’ emerging markets economist, Craig Botham. “For consumption to soldier on unaffected suggests that there has been little wealth shock.”

The true impact on informal sectors

But there are expectations among other economists that India could end up revising its numbers lower for the December quarter since some of it does not add up with high frequency real activity data that provide more accurate snapshots of the economy. Monthly data on auto sales, purchasing managers’ indexes, cement production and capital goods production in November and December showed notable declines, suggesting cash-intensive consumption and services were hit.

“The implications from the official GDP statistics that demand in the cash-intensive sectors (private consumption, transportation) picked up after demonetization appears to be at odds with the reality,” according to Sonal Varma, chief India economist at Nomura. The standout figure in the GDP read was the 10.1 percent jump in private consumption — shown in official data compiled by Nomura in a note — in the quarter.

Citigroup economists Samiran Chakraborty and Anurag Jha said a combination of good monsoon rains crucial for farmers, wage hikes for public sector employees and festival demand were supportive for consumption demand. “But the sharp decline in our rural demand indicator indicate that this data point could be prone to revision in subsequent releases,” they said.

A question many asked is how accurately did the quarterly GDP figures capture the impact of demonetization on India’s sizable informal sectors, where much of the transactions happen in cash. Experts say the quarterly statistics use data on organized sectors as a proxy for India’s unorganized sectors, implying the numbers may not accurately capture the effects.

Radhika Rao, an economist at Singapore’s DBS Bank, told CNBC sub-trends suggested the formal sector might have benefited from the banknote ban, with more transactions taking place through electronic means.

The ruling Bharatiya Janata Party’s (BJP) member of parliament in the upper house, Subramanian Swamy told CNBC’s “Squawk Box” that much of the calculations for the informal sectors were based on “guesswork,” “benchmarks” and “ratios” as opposed to raw data.

“Therefore, I won’t place too much emphasis on it. The real issues are the slowdown in small-and-medium industries because of the cash crunch,” Swamy said, adding public-sector banks also needed huge recapitalization and the fiscal deficit was well beyond what the government budgeted for — issues, he said, the government needed to address. But he acknowledged that it was too early to tell if the demonetization shock on the economy is over.

Focus on the RBI

In its February policy statement, the RBI called the effects of demonetization “transient” and expected a rebound in consumer demand and restoration in economic activity by the closing months of fiscal 2016-17, which ends March 31. But the central bank changed its policy stance to neutral from accommodative, leaving itself room to either raise, hold or cut rates as necessary.

Under current RBI governor Urjit Patel, the RBI reduced the key repo rate by 25 basis points to 6.25 percent in October.

Swamy, who had been a vocal critic of former RBI governor Raghuram Rajan, said interest rates under the latter’s tenure had risen too high and implied rates should be cut. “The rate of capital scarcity of the smaller-and-medium industries hit hard so we have to do something about that,” he said.

Chidambaram pointed out the RBI’s change in stance implied the central bank did not share the government’s assessment of India’s inflation outlook.

“If the government believes that inflation is well under control and the rates must be cut, why did the RBI say we’re moving to a neutral stance?” he said.

The general consensus among analysts and economists remains that effects of demonetization on the economy have already began to ebb.

But some pointed out that the next big challenge India has weather through will be the impact of its Goods and Services Tax (GST) expected to be rolled out this year.

 5 Minutes Read

Read Trump’s full prepared remarks for his first address to Cong

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

That torch is now in our hands. And we will use it to light up the world. I am here tonight to deliver a message of unity and strength, and it is a message deeply delivered from my heart.

The White House shared the following prepared remarks for President Donald Trump’s first address before Congress:

TO THE CONGRESS OF THE UNITED STATES:

Mr. Speaker, Mr. Vice President, Members of Congress, the First Lady of the United States, and Citizens of America:

Tonight, as we mark the conclusion of our celebration of Black History Month, we are reminded of our Nation’s path toward civil rights and the work that still remains. Recent threats targeting Jewish Community Centers and vandalism of Jewish cemeteries, as well as last week’s shooting in Kansas City, remind us that while we may be a Nation divided on policies, we are a country that stands united in condemning hate and evil in all its forms.

Each American generation passes the torch of truth, liberty and justice –- in an unbroken chain all the way down to the present.

That torch is now in our hands. And we will use it to light up the world. I am here tonight to deliver a message of unity and strength, and it is a message deeply delivered from my heart.

A new chapter of American Greatness is now beginning.

A new national pride is sweeping across our Nation.

And a new surge of optimism is placing impossible dreams firmly within our grasp.

What we are witnessing today is the Renewal of the American Spirit.

Our allies will find that America is once again ready to lead.

All the nations of the world — friend or foe — will find that America is strong, America is proud, and America is free.

In 9 years, the United States will celebrate the 250th anniversary of our founding — 250 years since the day we declared our Independence.

It will be one of the great milestones in the history of the world.

But what will America look like as we reach our 250th year? What kind of country will we leave for our children?

I will not allow the mistakes of recent decades past to define the course of our future.

For too long, we’ve watched our middle class shrink as we’ve exported our jobs and wealth to foreign countries.

We’ve financed and built one global project after another, but ignored the fates of our children in the inner cities of Chicago, Baltimore, Detroit — and so many other places throughout our land.

We’ve defended the borders of other nations, while leaving our own borders wide open, for anyone to cross — and for drugs to pour in at a now unprecedented rate.

And we’ve spent trillions of dollars overseas, while our infrastructure at home has so badly crumbled.

Then, in 2016, the earth shifted beneath our feet. The rebellion started as a quiet protest, spoken by families of all colors and creeds -– families who just wanted a fair shot for their children, and a fair hearing for their concerns.

But then the quiet voices became a loud chorus — as thousands of citizens now spoke out together, from cities small and large, all across our country.

Finally, the chorus became an earthquake – and the people turned out by the tens of millions, and they were all united by one very simple, but crucial demand, that America must put its own citizens first … because only then, can we truly MAKE AMERICA GREAT AGAIN.

Dying industries will come roaring back to life. Heroic veterans will get the care they so desperately need.

Our military will be given the resources its brave warriors so richly deserve.

Crumbling infrastructure will be replaced with new roads, bridges, tunnels, airports and railways gleaming across our beautiful land.

Our terrible drug epidemic will slow down and ultimately, stop.

And our neglected inner cities will see a rebirth of hope, safety, and opportunity.

Above all else, we will keep our promises to the American people.

It’s been a little over a month since my inauguration, and I want to take this moment to update the Nation on the progress I’ve made in keeping those promises.

Since my election, Ford, Fiat-Chrysler, General Motors, Sprint, Softbank, Lockheed, Intel, Walmart, and many others, have announced that they will invest billions of dollars in the United States and will create tens of thousands of new American jobs.

The stock market has gained almost three trillion dollars in value since the election on November 8th, a record. We’ve saved taxpayers hundreds of millions of dollars by bringing down the price of the fantastic new F-35 jet fighter, and will be saving billions more dollars on contracts all across our Government. We have placed a hiring freeze on non-military and non-essential Federal workers.

We have begun to drain the swamp of government corruption by imposing a 5 year ban on lobbying by executive branch officials –- and a lifetime ban on becoming lobbyists for a foreign government.

We have undertaken a historic effort to massively reduce job‑crushing regulations, creating a deregulation task force inside of every Government agency; imposing a new rule which mandates that for every 1 new regulation, 2 old regulations must be eliminated; and stopping a regulation that threatens the future and livelihoods of our great coal miners.

We have cleared the way for the construction of the Keystone and Dakota Access Pipelines — thereby creating tens of thousands of jobs — and I’ve issued a new directive that new American pipelines be made with American steel.

We have withdrawn the United States from the job-killing Trans-Pacific Partnership.

With the help of Prime Minister Justin Trudeau, we have formed a Council with our neighbors in Canada to help ensure that women entrepreneurs have access to the networks, markets and capital they need to start a business and live out their financial dreams.

To protect our citizens, I have directed the Department of Justice to form a Task Force on Reducing Violent Crime.

I have further ordered the Departments of Homeland Security and Justice, along with the Department of State and the Director of National Intelligence, to coordinate an aggressive strategy to dismantle the criminal cartels that have spread across our Nation.

We will stop the drugs from pouring into our country and poisoning our youth — and we will expand treatment for those who have become so badly addicted.

At the same time, my Administration has answered the pleas of the American people for immigration enforcement and border security. By finally enforcing our immigration laws, we will raise wages, help the unemployed, save billions of dollars, and make our communities safer for everyone. We want all Americans to succeed –- but that can’t happen in an environment of lawless chaos. We must restore integrity and the rule of law to our borders.

For that reason, we will soon begin the construction of a great wall along our southern border. It will be started ahead of schedule and, when finished, it will be a very effective weapon against drugs and crime.

As we speak, we are removing gang members, drug dealers and criminals that threaten our communities and prey on our citizens. Bad ones are going out as I speak tonight and as I have promised.

To any in Congress who do not believe we should enforce our laws, I would ask you this question: what would you say to the American family that loses their jobs, their income, or a loved one, because America refused to uphold its laws and defend its borders?

Our obligation is to serve, protect, and defend the citizens of the United States. We are also taking strong measures to protect our Nation from Radical Islamic Terrorism.

According to data provided by the Department of Justice, the vast majority of individuals convicted for terrorism-related offenses since 9/11 came here from outside of our country. We have seen the attacks at home -– from Boston to San Bernardino to the Pentagon and yes, even the World Trade Center.

We have seen the attacks in France, in Belgium, in Germany and all over the world.

It is not compassionate, but reckless, to allow uncontrolled entry from places where proper vetting cannot occur. Those given the high honor of admission to the United States should support this country and love its people and its values.

We cannot allow a beachhead of terrorism to form inside America — we cannot allow our Nation to become a sanctuary for extremists.

That is why my Administration has been working on improved vetting procedures, and we will shortly take new steps to keep our Nation safe — and to keep out those who would do us harm.

As promised, I directed the Department of Defense to develop a plan to demolish and destroy ISIS — a network of lawless savages that have slaughtered Muslims and Christians, and men, women, and children of all faiths and beliefs. We will work with our allies, including our friends and allies in the Muslim world, to extinguish this vile enemy from our planet.

I have also imposed new sanctions on entities and individuals who support Iran’s ballistic missile program, and reaffirmed our unbreakable alliance with the State of Israel.

Finally, I have kept my promise to appoint a Justice to the United States Supreme Court — from my list of 20 judges — who will defend our Constitution. I am honored to have Maureen Scalia with us in the gallery tonight. Her late, great husband, Antonin Scalia, will forever be a symbol of American justice. To fill his seat, we have chosen Judge Neil Gorsuch, a man of incredible skill, and deep devotion to the law. He was confirmed unanimously to the Court of Appeals, and I am asking the Senate to swiftly approve his nomination.

Tonight, as I outline the next steps we must take as a country, we must honestly acknowledge the circumstances we inherited.

Ninety-four million Americans are out of the labor force.

Over 43 million people are now living in poverty, and over 43 million Americans are on food stamps.

More than 1 in 5 people in their prime working years are not working.

We have the worst financial recovery in 65 years.

In the last 8 years, the past Administration has put on more new debt than nearly all other Presidents combined.

We’ve lost more than one-fourth of our manufacturing jobs since NAFTA was approved, and we’ve lost 60,000 factories since China joined the World Trade Organization in 2001.

Our trade deficit in goods with the world last year was nearly $800 billion dollars.

And overseas, we have inherited a series of tragic foreign policy disasters.

Solving these, and so many other pressing problems, will require us to work past the differences of party. It will require us to tap into the American spirit that has overcome every challenge throughout our long and storied history.

But to accomplish our goals at home and abroad, we must restart the engine of the American economy — making it easier for companies to do business in the United States, and much harder for companies to leave.

Right now, American companies are taxed at one of the highest rates anywhere in the world.

My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone. At the same time, we will provide massive tax relief for the middle class.

We must create a level playing field for American companies and workers.

Currently, when we ship products out of America, many other countries make us pay very high tariffs and taxes — but when foreign companies ship their products into America, we charge them almost nothing.

I just met with officials and workers from a great American company, Harley-Davidson. In fact, they proudly displayed five of their magnificent motorcycles, made in the USA, on the front lawn of the White House.

At our meeting, I asked them, how are you doing, how is business? They said that it’s good. I asked them further how they are doing with other countries, mainly international sales. They told me — without even complaining because they have been mistreated for so long that they have become used to it — that it is very hard to do business with other countries because they tax our goods at such a high rate. They said that in one case another country taxed their motorcycles at 100 percent.

They weren’t even asking for change. But I am.

I believe strongly in free trade but it also has to be FAIR TRADE.

The first Republican President, Abraham Lincoln, warned that the “abandonment of the protective policy by the American Government [will] produce want and ruin among our people.”

Lincoln was right — and it is time we heeded his words. I am not going to let America and its great companies and workers, be taken advantage of anymore.

I am going to bring back millions of jobs. Protecting our workers also means reforming our system of legal immigration. The current, outdated system depresses wages for our poorest workers, and puts great pressure on taxpayers.

Nations around the world, like Canada, Australia and many others –- have a merit-based immigration system. It is a basic principle that those seeking to enter a country ought to be able to support themselves financially. Yet, in America, we do not enforce this rule, straining the very public resources that our poorest citizens rely upon. According to the National Academy of Sciences, our current immigration system costs America’s taxpayers many billions of dollars a year.

Switching away from this current system of lower-skilled immigration, and instead adopting a merit-based system, will have many benefits: it will save countless dollars, raise workers’ wages, and help struggling families –- including immigrant families –- enter the middle class.

I believe that real and positive immigration reform is possible, as long as we focus on the following goals: to improve jobs and wages for Americans, to strengthen our nation’s security, and to restore respect for our laws.

If we are guided by the well-being of American citizens then I believe Republicans and Democrats can work together to achieve an outcome that has eluded our country for decades.

Another Republican President, Dwight D. Eisenhower, initiated the last truly great national infrastructure program –- the building of the interstate highway system. The time has come for a new program of national rebuilding.

America has spent approximately six trillion dollars in the Middle East, all this while our infrastructure at home is crumbling. With this six trillion dollars we could have rebuilt our country –- twice. And maybe even three times if we had people who had the ability to negotiate.

To launch our national rebuilding, I will be asking the Congress to approve legislation that produces a $1 trillion investment in the infrastructure of the United States — financed through both public and private capital –- creating millions of new jobs.

This effort will be guided by two core principles: Buy American, and Hire American.

Tonight, I am also calling on this Congress to repeal and replace Obamacare with reforms that expand choice, increase access, lower costs, and at the same time, provide better Healthcare.

Mandating every American to buy government-approved health insurance was never the right solution for America. The way to make health insurance available to everyone is to lower the cost of health insurance, and that is what we will do.

Obamacare premiums nationwide have increased by double and triple digits. As an example, Arizona went up 116 percent last year alone. Governor Matt Bevin of Kentucky just said Obamacare is failing in his State — it is unsustainable and collapsing.

One third of counties have only one insurer on the exchanges –- leaving many Americans with no choice at all.

Remember when you were told that you could keep your doctor, and keep your plan?

We now know that all of those promises have been broken.

Obamacare is collapsing –- and we must act decisively to protect all Americans. Action is not a choice –- it is a necessity.

So I am calling on all Democrats and Republicans in the Congress to work with us to save Americans from this imploding Obamacare disaster.

Here are the principles that should guide the Congress as we move to create a better healthcare system for all Americans:

First, we should ensure that Americans with pre-existing conditions have access to coverage, and that we have a stable transition for Americans currently enrolled in the healthcare exchanges.

Secondly, we should help Americans purchase their own coverage, through the use of tax credits and expanded Health Savings Accounts –- but it must be the plan they want, not the plan forced on them by the Government.

Thirdly, we should give our great State Governors the resources and flexibility they need with Medicaid to make sure no one is left out.

Fourthly, we should implement legal reforms that protect patients and doctors from unnecessary costs that drive up the price of insurance – and work to bring down the artificially high price of drugs and bring them down immediately.

Finally, the time has come to give Americans the freedom to purchase health insurance across State lines –- creating a truly competitive national marketplace that will bring cost way down and provide far better care.

Everything that is broken in our country can be fixed. Every problem can be solved. And every hurting family can find healing, and hope.

Our citizens deserve this, and so much more –- so why not join forces to finally get it done? On this and so many other things, Democrats and Republicans should get together and unite for the good of our country, and for the good of the American people.

My administration wants to work with members in both parties to make childcare accessible and affordable, to help ensure new parents have paid family leave, to invest in women’s health, and to promote clean air and clear water, and to rebuild our military and our infrastructure.

True love for our people requires us to find common ground, to advance the common good, and to cooperate on behalf of every American child who deserves a brighter future.

An incredible young woman is with us this evening who should serve as an inspiration to us all.

Today is Rare Disease day, and joining us in the gallery is a Rare Disease Survivor, Megan Crowley. Megan was diagnosed with Pompe Disease, a rare and serious illness, when she was 15 months old. She was not expected to live past 5.

On receiving this news, Megan’s dad, John, fought with everything he had to save the life of his precious child. He founded a company to look for a cure, and helped develop the drug that saved Megan’s life. Today she is 20 years old — and a sophomore at Notre Dame.

Megan’s story is about the unbounded power of a father’s love for a daughter.

But our slow and burdensome approval process at the Food and Drug Administration keeps too many advances, like the one that saved Megan’s life, from reaching those in need.

If we slash the restraints, not just at the FDA but across our Government, then we will be blessed with far more miracles like Megan.

In fact, our children will grow up in a Nation of miracles.

But to achieve this future, we must enrich the mind –- and the souls –- of every American child.

Education is the civil rights issue of our time.

I am calling upon Members of both parties to pass an education bill that funds school choice for disadvantaged youth, including millions of African-American and Latino children. These families should be free to choose the public, private, charter, magnet, religious or home school that is right for them.

Joining us tonight in the gallery is a remarkable woman, Denisha Merriweather. As a young girl, Denisha struggled in school and failed third grade twice. But then she was able to enroll in a private center for learning, with the help of a tax credit scholarship program. Today, she is the first in her family to graduate, not just from high school, but from college. Later this year she will get her masters degree in social work.

We want all children to be able to break the cycle of poverty just like Denisha.

But to break the cycle of poverty, we must also break the cycle of violence.

The murder rate in 2015 experienced its largest single-year increase in nearly half a century.

In Chicago, more than 4,000 people were shot last year alone –- and the murder rate so far this year has been even higher.

This is not acceptable in our society.

Every American child should be able to grow up in a safe community, to attend a great school, and to have access to a high-paying job.

But to create this future, we must work with –- not against -– the men and women of law enforcement.

We must build bridges of cooperation and trust –- not drive the wedge of disunity and division.

Police and sheriffs are members of our community. They are friends and neighbors, they are mothers and fathers, sons and daughters – and they leave behind loved ones every day who worry whether or not they’ll come home safe and sound.

We must support the incredible men and women of law enforcement.

And we must support the victims of crime.

I have ordered the Department of Homeland Security to create an office to serve American Victims. The office is called VOICE –- Victims Of Immigration Crime Engagement. We are providing a voice to those who have been ignored by our media, and silenced by special interests.

Joining us in the audience tonight are four very brave Americans whose government failed them.

Their names are Jamiel Shaw, Susan Oliver, Jenna Oliver, and Jessica Davis.

Jamiel’s 17-year-old son was viciously murdered by an illegal immigrant gang member, who had just been released from prison. Jamiel Shaw Jr. was an incredible young man, with unlimited potential who was getting ready to go to college where he would have excelled as a great quarterback. But he never got the chance. His father, who is in the audience tonight, has become a good friend of mine.

Also with us are Susan Oliver and Jessica Davis. Their husbands –- Deputy Sheriff Danny Oliver and Detective Michael Davis –- were slain in the line of duty in California. They were pillars of their community. These brave men were viciously gunned down by an illegal immigrant with a criminal record and two prior deportations.

Sitting with Susan is her daughter, Jenna. Jenna: I want you to know that your father was a hero, and that tonight you have the love of an entire country supporting you and praying for you.

To Jamiel, Jenna, Susan and Jessica: I want you to know –- we will never stop fighting for justice. Your loved ones will never be forgotten, we will always honor their memory.

Finally, to keep America Safe we must provide the men and women of the United States military with the tools they need to prevent war and –- if they must –- to fight and to win.

I am sending the Congress a budget that rebuilds the military, eliminates the Defense sequester, and calls for one of the largest increases in national defense spending in American history.

My budget will also increase funding for our veterans.

Our veterans have delivered for this Nation –- and now we must deliver for them.

The challenges we face as a Nation are great. But our people are even greater.

And none are greater or braver than those who fight for America in uniform.

We are blessed to be joined tonight by Carryn Owens, the widow of a U.S. Navy Special Operator, Senior Chief William “Ryan” Owens. Ryan died as he lived: a warrior, and a hero –- battling against terrorism and securing our Nation.

I just spoke to General Mattis, who reconfirmed that, and I quote, “Ryan was a part of a highly successful raid that generated large amounts of vital intelligence that will lead to many more victories in the future against our enemies.” Ryan’s legacy is etched into eternity. For as the Bible teaches us, there is no greater act of love than to lay down one’s life for one’s friends. Ryan laid down his life for his friends, for his country, and for our freedom –- we will never forget him.

To those allies who wonder what kind of friend America will be, look no further than the heroes who wear our uniform.

Our foreign policy calls for a direct, robust and meaningful engagement with the world. It is American leadership based on vital security interests that we share with our allies across the globe.

We strongly support NATO, an alliance forged through the bonds of two World Wars that dethroned fascism, and a Cold War that defeated communism.

But our partners must meet their financial obligations.

And now, based on our very strong and frank discussions, they are beginning to do just that.

We expect our partners, whether in NATO, in the Middle East, or the Pacific –- to take a direct and meaningful role in both strategic and military operations, and pay their fair share of the cost.

We will respect historic institutions, but we will also respect the sovereign rights of nations.

Free nations are the best vehicle for expressing the will of the people –- and America respects the right of all nations to chart their own path. My job is not to represent the world. My job is to represent the United States of America. But we know that America is better off, when there is less conflict — not more.

We must learn from the mistakes of the past –- we have seen the war and destruction that have raged across our world.

The only long-term solution for these humanitarian disasters is to create the conditions where displaced persons can safely return home and begin the long process of rebuilding.

America is willing to find new friends, and to forge new partnerships, where shared interests align. We want harmony and stability, not war and conflict.

We want peace, wherever peace can be found. America is friends today with former enemies. Some of our closest allies, decades ago, fought on the opposite side of these World Wars. This history should give us all faith in the possibilities for a better world.

Hopefully, the 250th year for America will see a world that is more peaceful, more just and more free.

On our 100th anniversary, in 1876, citizens from across our Nation came to Philadelphia to celebrate America’s centennial. At that celebration, the country’s builders and artists and inventors showed off their creations.

Alexander Graham Bell displayed his telephone for the first time.

Remington unveiled the first typewriter. An early attempt was made at electric light.

Thomas Edison showed an automatic telegraph and an electric pen.

Imagine the wonders our country could know in America’s 250th year.

Think of the marvels we can achieve if we simply set free the dreams of our people.

Cures to illnesses that have always plagued us are not too much to hope.

American footprints on distant worlds are not too big a dream.

Millions lifted from welfare to work is not too much to expect.

And streets where mothers are safe from fear — schools where children learn in peace — and jobs where Americans prosper and grow — are not too much to ask.

When we have all of this, we will have made America greater than ever before. For all Americans.

This is our vision. This is our mission.

But we can only get there together.

We are one people, with one destiny.

We all bleed the same blood.

We all salute the same flag.

And we are all made by the same God.

And when we fulfill this vision; when we celebrate our 250 years of glorious freedom, we will look back on tonight as when this new chapter of American Greatness began.

The time for small thinking is over. The time for trivial fights is behind us.

We just need the courage to share the dreams that fill our hearts.

The bravery to express the hopes that stir our souls.

And the confidence to turn those hopes and dreams to action.

From now on, America will be empowered by our aspirations, not burdened by our fears –-

inspired by the future, not bound by the failures of the past –-

and guided by our vision, not blinded by our doubts.

I am asking all citizens to embrace this Renewal of the American Spirit. I am asking all members of Congress to join me in dreaming big, and bold and daring things for our country. And I am asking everyone watching tonight to seize this moment and —

Believe in yourselves.

Believe in your future.

And believe, once more, in America.

Thank you, God bless you, and God Bless these United States.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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The Fed is sending a strong message about a March rate hike

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

Four Fed presidents spoke Tuesday, and all indicated an interest rate hike could be considered in March. “All are on the same page, including hawks and doves, and especially Dudley,” said Tom Simons, money market economist at Jefferies.

The Fed chorus about a possible March interest rate hike is getting much louder, and an upcoming inflation report could clinch what was until recently considered a long shot.

The latest Federal Reserve official to push the the group’s March meeting into play was New York Fed President William Dudley, viewed as a close ally of Fed Chair Janet Yellen and a central figure in the Federal Open Market Committee. Dudley said on CNN International Tuesday afternoon that the “case for monetary tightening has become more compelling.”

Four Fed presidents spoke Tuesday, and all indicated an interest rate hike could be considered in March. “All are on the same page, including hawks and doves, and especially Dudley,” said Tom Simons, money market economist at Jefferies.

Treasury yields shot up after Dudley’s comments. The 2-year yield reached 1.28 percent, its highest level of the year, and well off the day’s low of 1.16 percent. The 2-year note is the most sensitive to Fed rate hikes.

“He stoked the flames. When he says the case for tightening is a lot more compelling, to me that’s a sign that they are getting things together for March now,” said Simons. Most Fed watchers have been forecasting a June rate hike, though strong inflation and retail sales data and hawkish comments from Yellen raised the odds for March and May in recent weeks.

Odds got even higher as more Fed presidents chimed in about a March hike. By some measures, the market odds for a March hike jumped to about 70 percent from

just over 50 percent after Dudley’s comments, according to Peter Boockvar of the Lindsey Group.

Inflation data scheduled for Wednesday could be a key factor in driving even more momentum toward a March hike. While the Consumer Price Index has been risen well above 2 percent, the Fed’s preferred measure of inflation has lagged. The headline personal consumption expenditure price data could now show an increase of 2 percent for the first time in nearly five years when it is released at 8:30 a.m. ET Wednesday, Simons said.

The Fed has long been targeting 2 percent inflation, and the PCE index has stubbornly lagged.

The other data the Fed will view as key for a March hike is the February employment report, expected on March 10. Labor has been a strong pillar for the economy, and if that report shows consistent job growth, the Fed could have the all clear, barring some unforeseen event. The weakness in wage gains in the January report was one factor that discouraged the market from expecting a March rate hike.

More clues are expected to come Wednesday evening when Fed Governor Lael Brainard speaks at 6 p.m. ET. Brainard is also close to Yellen.

Yellen speaks on Friday at midday.

 

“Brainard could be a preview of Yellen,” said Deutsche Bank chief U.S. economist Joseph LaVorgna. He said Dudley and the governors are the most important Fed speakers, and the batch of other Fed presidents is not as meaningful.

Brainard speaks in Cambridge, Massachusetts at 6 p.m. Wednesday’s Fed speakers include Dallas Fed President Rob Kaplan, at 1 p.m. ET. On Tuesday, he told CNBC that the Fed should be in the process of removing “accommodation” in its monetary policy.

“Hopefully, we’ll see some consistency in the commentary of Brainard tomorrow, and if we see something neutral to slightly hawkish from Yellen Friday, you’ll have to lock it in. The fact you had Harker, Williams, and Dudley all basically speaking at the same time and trying to make it clear a rate hike is coming is interesting four days before the blackout begins,” said Simons.

Besides Yellen, Fed Vice Chair Stanley Fischer speaks at midday Friday.

“Yellen could always throw cold water on it,” he said, adding Trump’s comments on spending and taxes in his speech to Congress Tuesday night could be important if they provide more detail. The Fed has been trying to assess the impact of Trump’s policies on the economy, but it has not had much hard information.

LaVorgna said he is watching the PCE deflator as well as consumer income and spending, also released at 8:30 a.m. Economists watch the core PCE, and that is expected to show a 1.8 percent year over year gain.

“The last few months, the core PCE has been on the lower side, and the issue is whether that will extend into January. I don’t think inflation is going to pick up a whole lot, despite what we’ve seen in core CPI. The market is fixated on core PCE because if you get a surprise, the probability of a Fed hike goes up even further,” said LaVorgna.

Fed presidents have been lining up to make clear that March is a “live meeting,” and an interest rate hike will be on the table. Fed watchers, however, have not embraced that time frame, with many sticking with expectations for no hike until June.

Wednesday’s data also includes important ISM manufacturing data at 10 a.m. and Markit manufacturing PMI at 9:45 a.m. There is also construction spending at 10 a.m. and the Fed’s beige book at 2 p.m. Monthly vehicle sales are also released.

Earnings are expected from Best Buy, Lowe’s, Dollar Tree, Mylan Labs, Luxottica Group, Crocs and Windstream before the opening bell. Broadcom, Planet Fitness and Shake Shack report after the closing bell.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
Powered by
Are you a Crypto Head? It’s time to prove it!
10 Questions · 5 Minutes
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Win WRX (WazirX token) worth Rs. 1500.
Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?